Czech Republic Economic Sentiment May 2019

Czech Republic: Economic sentiment falls to near three-year low in May

May 24, 2019

The economic sentiment indicator, a composite confidence indicator published by the Czech Statistical Office (CSO), declined to a near three-year low of 95.7 in May from 97.1 in April. As a result, the indicator moved further below the 100-point mark that separates optimism from pessimism in the Czech economy.

The business confidence index dipped from 95.8 in April to 93.8 in May, the lowest reading since June 2016. The print reflected weaker sentiment in the industrial and services sectors more than offsetting higher confidence in the construction and trade sectors.

In contrast, consumers turned more optimistic in May, with the consumer confidence index climbing to 105.1 from 103.8 in the previous month. The upturn was chiefly due to households’ stronger willingness to save compared to April. Consumer confidence remains well above the historical average.

FocusEconomics panelists expect private consumption to expand 2.8% in 2019, which is down 0.1 percentage points from last month’s projection, and 2.7% in 2020. Meanwhile, fixed investment is seen increasing 4.2% in 2019, which is down 0.1 percentage points from last month’s estimate, and 3.4% in 2020.

Author:Javier Colato, Economist

Sample Report

Czech Republic Economic Sentiment Chart

Note: The Economic Sentiment Indicator is in compliance with the EU methodology presented as a weighted average of confidence indicators in industry, construction, trade, selected services and the consumer confidence indicator. Average of 2005 = 100.Source: Czech Statistical Office (CSO).

The economy grew a seasonally-adjusted 2.7% year-on-year in the second quarter, matching both Q1’s reading and the preliminary release, according to a detailed breakdown of GDP released by Czech Republic’s Statistical Institute on 30 August.

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